Comments on ECJ C-461/21: ECJ on proof of VAT exemption for transport services

The ECJ recently reviewed the requirements for VAT exemption in relation to transport services for imported goods in Romania.
The plaintiff, SC Cartrans Preda SRL, did not charge VAT for transporting goods from the Netherlands to Romania, relying on the VAT exemption for such services.
However, the Romanian tax administration refused the exemption as the plaintiff did not provide all the necessary supporting documents.
The ECJ ruled that only two conditions must be met for the VAT exemption: the supply must be related to the importation of goods and the value of the supply must be included in the taxable amount of import VAT.
The appropriate evidence must be provided to demonstrate these conditions, but proof of registration of importation alone is not sufficient.
The documents of the importer of the goods must also be considered, and the VAT exemption can only be denied if it is not possible to verify the connection between the transport service and the importation of goods or include transport costs in the taxable amount based on supporting documents.
The principle of neutrality requires that VAT exemptions be granted if the substantive legal requirements are met, and formal proof is not decisive.

Source KMLZ